Chesapeake Energy Producing in Excess of 2 Billion Cu Ft Gas

OKLAHOMA CITY, May 03, 2010 (BUSINESS WIRE) -- --Proved Reserves Reach 14.8 Tcfe; Company Reports 2010 First Quarter Drilling and Completion Costs of $0.67 per Mcfe

--Company Discloses Details on 12 Unconventional Liquids-Rich Plays on 1.9 Million Net Acres with Risked Unproved Resources of 2.0 Bboe; Company Expects to Increase its Oil and Natural Gas Liquids Production to More Than 100,000 Bbls per Day, or 15%-20% of Total Production, by Year-End 2012

Chesapeake Energy Corporation (CHK 24.08, +0.28, +1.18%) today provided an update on its operational activities. For the 2010 first quarter, daily production averaged 2.586 billion cubic feet of natural gas equivalent (bcfe), a decrease of 32 million cubic feet of natural gas equivalent (mmcfe), or 1%, below the 2.618 bcfe produced per day in the 2009 fourth quarter and an increase of 219 mmcfe, or 9%, over the 2.367 bcfe produced per day in the 2009 first quarter. Adjusted for 2010 first quarter asset sales of a 25% joint venture interest in the company's Barnett Shale assets (averaging approximately 155 mmcfe per day of production during the 2010 first quarter) and the company's sixth volumetric production payment transaction (averaging approximately 14 mmcfe per day during the 2010 first quarter), Chesapeake's sequential and year-over-year daily production growth rates would have been 5% and 19%, respectively.

Chesapeake's average daily production of 2.586 bcfe for the 2010 first quarter consisted of 2.328 billion cubic feet of natural gas (bcf) and 43,011 barrels of oil and natural gas liquids (bbls). The company's 2010 first quarter production of 232.8 bcfe was comprised of 209.6 bcf (90% on a natural gas equivalent basis) and 3.9 million barrels of oil and natural gas liquids (mmbbls) (10% on a natural gas equivalent basis). The company's year-over-year growth rate of natural gas production was 7% and its year-over-year growth rate of oil and natural gas liquids production was 35%.

Chesapeake anticipates reporting full-year production growth of approximately 8-10% in 2010 and 16-18% in 2011.

Chesapeake's Proved Natural Gas and Oil Reserves Increase by 4% in the 2010 First Quarter to 14.8 Tcfe; Company Reports 2010 First Quarter Drilling and Completion Costs of $0.67 per Mcfe